IPFS Dave Hodges

More About: Economy - Economics USA

The Economic Collapse of 2009 (Part Two)

How bad will it get?


America just experienced the most dismal Christmas retail season on record. We are already seeing massive retail failures which are tearing at the guts of economy (e.g., KB Toys, Linens and Things, Comp USA, Sharper Images, Circuit City). And  this is just the tip of the iceberg.


Based on the notion that current events form our future, let’s look at what is coming. Starbucks and Office Depot are already closing stores. Wall Street is emptying out entire floors of buildings and in some cases, they are emptying out entire buildings. Who is going to rent all of these empty buildings? The simple answer is nobody. America is going to have a commercial real estate collapse which is going make the home real estate collapse look like a walk in the park. The commercial real estate market is grossly overleveraged. We are not going to have to wait much longer as this total commercial real estate collapse will be recognizable by March of 2009. When Obama is inaugurated, the United States will see about 30 days of hope. However, as the office parks and shopping malls are emptied, the realization that we are in the greatest of all depressions will come into American conscious awareness.


Not even the corporate controlled mainstream media will be able to deny that we have slipped into the mother of all depressions. The media will label this event The Greatest Depression as it will be far worse than the Depression of the 1930’s. Back then, most Americans did not have a home mortgage. Back then, Americans did not have credit cards. Back then, America had a trade surplus. Back then, Americans had a sense of self-reliance and possessed real skills. Back then, America was an ascending society whose people valued education. Back then, America had an enormous and emerging manufacturing base. Today, Americans are awash in $15 trillion dollars of credit card debt. Today, America has the greatest trade deficit in the history of the planet. Today, Americans are spoiled and possess a personal belief in their own entitlements. Today, our manufacturing base has left the country in search of a cheaper labor force. Today, we are a descending society in which we are witnessing the emergence of a permanent underclass created in large part by the 50% drop out rate present in many of our major metropolitan areas. Today, we do not have the capacity to push out of the current calamity.  


Real unemployment numbers are about 13%. By the end of 2009, we will approach 25% unemployment and the end may not be in sight even by the end of next year. Where are these unemployed persons going to get a job? Where are the college graduates going to work? Most will not even be able to get a job at Kmart, assuming Kmart is still in business. Ask yourself why we are bailing out the auto industry. Who can afford to buy cars? Are we even aware that the only job gains in the present economy are in the government?


After the commercial real estate collapse, we are going to see civil unrest eventually explode into a revolution. What is going on in Greece is not about the murder of a 15 year old child. The riots in Greece are about pent up anger, particularly among the young people who are staring directly into a futureless future. These young Greek adults are looking at the corruption in their government, the repeated string of scandals and the fact that many have no job to go to. When people lose everything, they have nothing left to lose and they will subsequently lose it. In your American bred ignorance, if you really believe that social unrest only happens in foreign lands, you are not going to have wait very long to find out just how wrong you really are. When you have the homeless, the hapless and the hungry on the streets of America, you are going to see civil unrest to such a degree that the 1992 LA Riots will seem like a benign protest by comparison. We are going to see a revolution in this country and these are the beginning phases.Whether is is in Athens, Greece, or in Athens, Georgia, this scenario will soon play out over the entire planet.  


Federal, state and local governments are in the midst of squeezing every last ounce of financial life blood out the average American.  New York is enacting the 18% obesity tax on soda. The inept, immoral and corrupt photo radar, complete with its proven unreliability, is hell bent on separating as many Americans as possible from their money. At a time when property values are plummeting by as much as 40-50%, property taxes should be going down. But at a time when Americans can least afford it, our property taxes are skyrocketing along with the rest of our taxes as failing governments, at all levels, are attempting to bail themselves out at our expense. History is replete with this type of governmental fleecing in which governments push the average citizen over the revolutionary cliff with abusive and unsustainable levels of personal taxation.


Who will fire the first shot of the coming revolution? Will it start with the displaced workers? Will it emanate from our college campuses? I cannot say for certain, but it is coming and it is coming very soon.


What is your place in all of this? When the Titanic went down, who did they save? They saved 70% of the wealthy as they were the ones that got into the life boats while the coach passengers were locked into steerage in which only 10% of those poor persons survived. This is exactly what is going on now. The government is not bailing out small business owners, pensions and the average investor. They, we, are only bailing out the rich friends of the international bankers.  The rest of us are locked into middle class steerage.  


Don’t you just love the language of the Treasury Department as they tell us we are going to have a car czar, just like the drug czar, or the education czar? Is this the language of a democracy? Just look at the people who are the players in all of this (e.g., Henry Reid, Nancy Pelosi, George Bush, etc.). What have any of these people ever accomplished? Can any of these buffoons say “Look at the greatness which I have created?” Everything that these gangster bankster minions have done is of Katrina rescue quality. They are not going to bail us out; they are not going to save the economy. They are simply forestalling the inevitable. The epitaph of the American economy has already been written by what John F. Kennedy called the Gnomes of Zurich.


We may have elected a new president for the country, but the country club remains the same. Whether it is Robert Rubin of Goldman Sachs or Henry Paulson of Goldman Sachs, or Timothy Geithner of the Federal Reserve, running our economy into the ground behind the scenes, does it really matter who we elect? Most Americans mistakenly believe that the answer lies in participating in the endless pendulum shift between electing a different set of democrats and republicans every four years. When democrat Bill Clinton was elected, the present economic train wreck began with NAFTA. Republican George Bush pushed through CAFTA and the North American Union. Both political parties are bought and paid for by the global corporations who are ultimately controlled by the international bankers. I am afraid that we are not going to be able to get through this ordeal without a lot of dead American citizens.


How bad will it get?


Dave Hodges is a psychology and statistics instructor as well as a college basketball coach. He is also the host of the radio talk show, The Common Sense Show, which airs on over 50 stations, on satellite and world wide on the internet. Dave's show airs on Sunday evenings from 9-11PM Central time. The Common Sense Show can be accessed live at http://republicbroadcasting.org/. The shows are archived at http://republicbroadcasting.org/index.php?cmd=archives.month&ProgramID=61&year=8&month=12&backURL=index.php%253Fcmd%253Darchives.getyear%2526ProgramID%253D61%26year%3D8%26